Shredder Wear Parts Tariff Exclusion Extended Amid ReMA Advocacy

USTR Extends Tariff Exclusion on Shredder Wear Parts

The U.S. Trade Representative (USTR) has granted a critical three-month extension on the tariff exclusion for shredder wear parts under Section 301. These parts, including essential components like auto shredder hammers, were facing a 25% import duty as part of U.S. trade actions targeting Chinese goods. The decision, announced this week, directly benefits nearly 180 product lines used in U.S. shredding operations.

This temporary relief buys time for U.S. recyclers who depend on these imports. According to Adam Shaffer, Vice President of International Trade at the Recycled Materials Association (ReMA), domestic sourcing options remain extremely limited. “Since many crucial pieces of equipment and components for recycling operations nationwide are not available for purchase from domestic manufacturers, these increased costs… will adversely impact the competitiveness of the U.S. recycled materials industry,” Shaffer emphasized.

However, this exclusion only runs through November 30, 2025, leaving long-term uncertainty. ReMA continues to advocate for a permanent exemption, citing national security and industrial supply chain stability.

ReMA Pushes Back Against Section 301 and 232 Tariffs

Beyond Section 301, ReMA is also pushing for exclusion from Section 232 tariffs, which now apply a 50% duty on similar steel-related imports. Shaffer noted these additional tariffs pose a compounded threat to U.S. recyclers and downstream industries such as steel and aluminum manufacturing.

“Our strategy has been to demonstrate how essential recyclers are to manufacturing supply chains and U.S. national security,” Shaffer said. The association argues that higher operating costs could eventually ripple into domestic steel production, which heavily relies on processed scrap metal.

The broader concern is the lack of domestic capacity for producing auto shredder wear parts. Without access to cost-effective imports, recycling plants risk operational delays and increased overhead, weakening America’s position in the global materials market.

SuperMetalPrice Commentary:

The USTR’s short-term extension offers recyclers brief breathing room, but the lack of a permanent resolution highlights a larger vulnerability. With U.S. recycling firms tethered to foreign supply chains for key components, any tariff fluctuation creates cost instability. The double exposure to both Section 301 and 232 tariffs could disrupt pricing trends across the steel recycling ecosystem. If permanent exclusions aren’t secured, expect increased downstream pricing pressures on both ferrous and non-ferrous commodities by Q1 2026.